Chennai based NBFC Company Northern Arc Capital files DRHP with SEBI for the proposed IPO; Key Details here

Northern Arc Capital is into Financial Services NBFC and is looking raise funds through Fresh Issue and Offer For Sale

Northern Arc CapitalIPO: Fresh Issue of Equity shares aggregating up to Rs.500 crores. Offer of Sale of 21,052,629 Equity Shares through public issue IPO

Northern Arc Capital IPO: Northern Arc Capital Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Promoters of Northern Arc Capital are Company does not have an identifiable promoter and holds 0% stake in the company.

Key Details:

• Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 500 crores and an Offer for Sale of up to 21,052,629 Equity Shares..
• ICICI Securities, Axis Capital, Citi Global Markets have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 500 Crs and offer-for-sale (OFS) of up to 21,052,629 equity shares by Investors selling shareholders who will offload Up to 21,052,629 Equity Shares..

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Objects of the issue:
Company intends to utilize the Net Proceeds to meet future capital requirements towards onward lending in focused sectors, namely, MSME financing, MFI, consumer finance, vehicle finance, affordable housing finance and agricultural finance, and to ensure compliance with the RBI regulations on capital adequacy, for Financial Year 2025. .

About Company:
Established in 1989, NBFC company Northern Arc Capital is diversified financial services platform catering to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 15 years, Since 2009, company facilitated financing of over ₹1.73 trillion that has impacted over 101.82 million lives across India, as of March 31, 2024. Business Model includes: i) Lending: Retail lending, under-served households and businesses lending etc ii) Placements: Credit for Originator Partners iii) Fund Management: managing debt funds and providing portfolio management services.

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About Industry:
The Indian retail credit market is expected to further grow at a CAGR of 17-18% between Fiscals 2024 and 2026 to reach ₹100.9 trillion by Fiscal 2026. NBFCs loan outstanding for MSME, MFI, consumer finance, vehicle, affordable housing and agriculture loans are expected to grow at a CAGR of 13-15%, 23-25%, 17-20%, 12-14%, 14-16% and 9-10%, respectively, between Fiscals 2024-2026. Rural areas, which accounted for 47% of GDP, received only 9% of the overall banking credit, as of March 31, 2024, which also shows the vast market opportunity for banks and NBFCs to lend in these areas.

Source: SEBI, BSE, NSE, DRHP, Northern Arc Capital, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.